NPS subscribers may get loans on easy terms

To provide housing finance options to National Pension System (NPS) subscribers, the pension fund regulator has set up a committee to look into the proposal, a senior executive said earlier this week.

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The committee will be headed by former MD and CEO of HDFC Life Deepak M Satwalekar. The panel has been given six weeks to submit its report. The first meeting was held on November 19 and the second one is slated for the second week of December, he said.

“We are exploring housing options for NPS subscribers and we have set up a committee to study the proposal,” Pension Fund Regulatory and Development Authority (PFRDA) Whole-time Member for finance, R V Verma, told PTI.  Two most important retirement assets are pensions and housing. There is also a strong synergy between pension fund and housing, he said.

“We are looking at the possibility of extending housing loans at affordable terms to NPS subscribers. This will be a win-win for all stakeholders and a big support to the NPS members, apart from giving fillip to the government's vision of housing for all,” he said.

The committee will examine the desirability/need for offering/facilitating funding for home ownership for the subscribers of the NPS.

The panel will also examine in detail the pros and cons of such scheme and implications for the NPS, with particular reference to the impact on pension wealth and the retirement pension amount. —PTI